The cryptocurrency market witnessed extreme volatility in the past few days in the respective prices of digital currencies. However, it’s not shocking to observe the market crash last month. Since, in earlier times, the crypto market has gone through these falls and even managed to rise as well. Though the major concern at present is the introduction of balance and checks in the system. The government should take responsibility and regulate the crypto market accordingly or else the market will continue to face these crashes every once in a while.
Although it’s not like they have not been showing concern about the issue, investors want them to focus more on the crypto assets. If we take a look at the past policies introduced by the government, it portrays that the cryptocurrency market in India is always uncertain about its running. Previously a renowned bank Reserve Bank of India (RBI) along with the Centre had kind of signalled towards the possibility of the misuse of this technology. While they had also tried to shift the focus on the future possible bans on the usage of cryptocurrencies here in India.
Later, RBI even issued notice for all the respective banks to stop getting involved with the cryptocurrency market. It was stated that no bank would involve in business with any crypto trading platform. However, the notices were soon shut down by the Supreme court. After that, neither the courts nor the governments issued any regulation regarding the crypto market. Later in February, the governor of the Reserve Bank of India announced that the bank would launch its own cryptocurrency as they are presently working on it.
Government must bring new regulations into existence:
Following the incident, Nirmala Sitharaman declared that not all the windows of the cryptocurrency would remain closed. All together this implies that the future of cryptocurrency in India is currently uncertain. Investors are always worried about the sudden regulation of the currencies getting banned. As the worth of the crypto market in India is $15 billion which consists of around 6 million users, the government should take this into concern. They should implement some regulations that could be beneficial for the existing market.
All the existing acts such as the Information Technology Act, 2000, Settlement Systems Act, 2007, Prevention of Money Laundering Act, 2000 should alter the regulations and bring some relevant changes. Undoubtedly, the crypto market has a bright future ahead despite all the ups and downs which are nothing but a crucial part of the market. Let’s hope that by the end of this year, the Indian government comes up with some regulations and approach the market with a positive outlook.